Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

What is withdrawals from the circular flow of income known as?

Options:

Leakages

Injections

Additions

Both 1 and 2

Correct Answer:

Leakages

Explanation:

The correct answer is option 1 : Leakages

Withdrawals from the circular flow of income are known as Leakages. These are funds that are taken out of the income flow, such as savings, taxes, and imports. In contrast, Injections refer to additions to the circular flow of income, such as investment, government spending, and exports.